Although the key interest rate of the European Central Bank (ECB) has recently risen enormously, interest rates are reaching domestic savers very slowly. This is evident from a savings interest test conducted by the Chamber of Labor among 28 banks. The Labor Chamber (AK) called on the banks on Wednesday to pass on the higher interest rates to savers and substantiates their claim with an overview of the savings interest rates at institutions in Austria.
The European Central Bank (ECB) has raised interest rates sharply in recent months, from zero to two percent. Credit customers are already feeling the effects of the higher interest rates, but not much is happening for savers.
Interest on savings is often negligible
“In particular, interest rates for savings accounts, savings cards and savings accounts due daily are still scraping the zero percent limit, although more is possible with the increase in key interest rates,” says AK consumer advocate Gabriele. Zgubic.
According to the AK Savings Rate Test, conducted by 28 banks for new customers, the interest for a savings account that matures daily is between 0.001 and 0.375 percent for new customers, and for savings cards and savings accounts that are due daily between 0.01 percent. and 0.125 percent.
High interest rates often come with snags
With online savings, considerably higher interest rates are sometimes possible for new customers, but higher interest rates are often subject to additional conditions. New customers can count on 2 percent interest at the Santander Consumer Bank, but only for the first three months. Kommunalkredit offers 1.25 percent interest for online savings, but only from a minimum savings amount of 10,000 euros.
With less flexible savings offers, interest rates of up to 2.30 percent are possible if you tie up your money for 12 months and even up to a maximum of 3.00 percent for a 60-month commitment.
Be careful when closing the savings account
The AK advises savers to check the terms of existing savings accounts and – in the case of savings deposits with variable interest – to add interest if necessary. On the other hand, caution should be exercised when opening a savings account, as this may incur costs. Particularly for savings accounts with a bond, early termination results in lower interest income.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
